Wealthfront vs S&P index
Im tired of investing in individual stocks......i want to set it and forget it. Do i put my money in s&p index fund or wealthfront?
Betterment and a little in crypto.
Betterment is practically the same as wealthfront, no? I already have $30k in all coins trades in coinbase. I could diversify to other alt coins but i dont want to deal with other crypto exchanges
Betterment is like Wealthfront but earns more on higher risk profiles. But hands off you're not going to make more than 20% per year. Hands on with Robinhood I got 200% per year last three years straight, then switched to cryptos and got more than 10000% in a year....
S&P 500 has been on fire for the last 5 years so don't use those years to compare those returns to a diversified portfolio such as Wealthfront. The last 5 years were anything but very atypical and the next 5 could be very different I LOVE the following chart. You can see how the S&P 500 did as an asset class compared to a bunch of other asset classes (international developed markets, emerging markets, bonds, etc). https://novelinvestor.com/asset-class-returns/ The orange boxes represent the S&P 500. Click on one of those and see.
S&P is a diversified portfolio such as wealthfront. The only difference is whether it's worth paying that exorbitant management fee to get tax loss harvesting. If you want to add international or small stocks you can just invest in VT.
Thanks, ive seen this before. I took this chart to mean s&p will outperform fully diversified portfolio in bull markets and ubderperform in bear. However, it doesnt tell me how s&p fares over the long run (10 year horizon) vs the diversified portfolio. Perhaps i missed it
I use both WF and my own portfolio of 3-5 index funds like VT, VOO, an emerging market fund, etc. just be careful of wash sales
Isnt holding index funds outisde wf kind of redundant?
Most my funds are in index funds anyways. This way I don’t have to guess the answer of if WF is better than index funds in all market conditions. WF also limits which funds they put your money in, so if you want more specialized funds this gives you that opportunity
Just wondering why large cap has seen a constant increase from Last decade.? Can someone please elaborate
Just closed my Wealthfront account it made shit compared to my passive stock investment during market high and low
What was your risk score with wealthfront? I knew wf would return less in bull markets but was thinking it would fare better on bear markets....looks like this wasnt the case with you? Was TLH just hype...did you benefit from it?
Medium risk profile didn’t help in profits or loss. It’s jus not for me, moving on! :)